Vocab - Banking, Investing & The Stock Market

Match the term with its correct definition: money supply

• all the money available in the United States economy

• the total amount of coins in circulation

• the total value of all goods and services produced

• the total amount of foreign currency reserves

Match the term with its correct definition: liquidity

• the ability to be used as, or directly converted to cash

• the process of buying and selling assets

• the measure of a company's profitability

• the strategy of diversifying investments

Match the term with its correct definition: default

• failure to pay back a loan

• a type of insurance

• a legal agreement

• a financial asset

Match the term with its correct definition: interest

• the price paid for borrowed money

• a type of insurance policy

• a method of calculating taxes

• a form of government regulation

Match the term with its correct definition: principal

• the amount of money borrowed

• a type of interest rate

• a financial institution

• a repayment schedule

Match the term with its correct definition: financial asset

• claim on the property or income of a borrower

• a tangible item owned by an individual

• a type of currency used in international trade

• a government-issued identification document

Match the term with its correct definition: financial intermediary

• institution that helps channel funds from savers & borrowers

• a type of financial market

• a government agency that regulates the economy

• a financial product used for investment

Match the term with its correct definition: mutual fund

• pools the savings of many individuals & invests this money in a variety of stocks, bonds & other financial assets

• a type of savings account that earns interest based on the stock market performance

• a financial instrument that represents a loan made by an investor to a borrower

• a type of insurance policy that provides coverage for multiple types of risks

Match the term with its correct definition: diversification

• spreading out investments to reduce risk

• concentrating investments in a single asset

• investing only in high-risk assets

• avoiding investments altogether

Match the term with its correct definition: return

• the money an investor receives above & beyond the sum of money invested

• a type of financial loss

• an investment strategy

• a type of stock market index